Bausch Health to Acquire DURECT Corporation in $63M Deal to Advance Liver Disease Treatment

Bausch Health Companies Inc. (NYSE:BHC) is one of the most undervalued Canadian stocks to buy now. On July 29, Bausch Health Companies announced a definitive agreement to acquire DURECT Corporation (NASDAQ:DRRX). The acquisition is valued at ~$63 million upfront with potential for an additional $350 million in sales milestone payments, and will be an all-cash transaction.

Bausch Health is acquiring DURECT primarily for its lead asset, called larsucosterol. This novel therapeutic molecule is an epigenetic modulator that the FDA has granted Breakthrough Therapy Designation for the treatment of alcoholic hepatitis/AH, which is a life-threatening form of alcohol-associated liver disease.

Bausch Health to Acquire DURECT Corporation in $63M Deal to Advance Liver Disease Treatment

A closeup of pills in a pharmacy, representing the high quality medications of the company.

AH is characterized by severe liver inflammation & necrosis and accounted for ~164,000 hospital admissions in the US in 2021. There are currently no FDA or European Medicines Agency/EMA-approved treatments for the condition. The acquisition of larsucosterol strengthens Bausch Health’s commitment to hepatology. Bausch Health plans to use its expertise to advance larsucosterol through a planned Phase 3 program.

Bausch Health Companies Inc. (NYSE:BHC) is a diversified specialty pharmaceutical and medical device company that develops, manufactures, and markets products in gastroenterology, hepatology, neurology, dermatology, generic pharmaceuticals, OTC products, aesthetic medical devices, and eye health.

DURECT Corporation (NASDAQ:DRRX) is a late-stage biopharmaceutical company that develops epigenetic therapies that target dysregulated DNA methylation to transform the treatment of serious and life-threatening conditions, such as acute organ injury.

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Disclosure: None. This article is originally published at Insider Monkey.